Nucor, AK Steel Post Losses

Published 7:00 pm, Wednesday, January 30, 2002

Nucor Corp., the country's second-largest steel maker, said Thursday its fourth-quarter profits were down by 66 percent because of depressed demand for steel in a recession and lower prices.

Net earnings for the fourth quarter of 2001 were $26.5 million, or 34 cents a share, compared with $79.8 million, or $1.03 per share, in the same October-to-December period the previous year. The quarterly figures include $20.2 million from the sale of an iron carbide subsidiary.

Middletown, Ohio-ased AK Steel Corp. said Thursday it lost $76.4 million in the fourth quarter, including one-time expenses of $144 million.

The loss per share for the quarter ended Dec. 31 was 71 cents. A year ago, the company earned $15.5 million, or 14 cents per share.

Nucor's quarterly profits outstripped Wall Street expectations of 17 cents a share, according to analysts surveyed by Thomson Financial/First Call. Analysts had forecast earnings of $1.28 for the year.

The results showed Nucor hasn't been able to avoid an industrywide price slump despite making steel from scrap and using nonunion workers. Nucor's minimills operate in rural locations in Alabama, Arkansas, Indiana, Nebraska, New York, North Carolina, South Carolina, Texas and Utah.

AK Steel's quarterly results included a pension charge of $194 million because of losses in equities markets and declining interest rates, AK Steel said. That expense was partially offset by a $50 million pre-tax gain for receiving shares in the restructured health care insurer Anthem Inc., with which AK Steel does business.